April 28, 2022

FinCEN Acting Director Reports on Efforts to Implement AMLA

FinCEN Acting Director Himamauli Das testified before the House Financial Services Committee on the status of proposed rules to implement the Anti-Money Laundering Act of 2020 ("AMLA").

Corporate Transparency Act

Mr. Das described three proposed rules to implement the statutory requirements of AMLA corporate transparency provisions ("CTA") on anonymous shell companies. The first proposal specifies who must file a beneficial ownership report, what information must be reported and when a report is due (see previous coverage). Mr. Das reported that FinCEN is currently working on a second proposed rule governing access to beneficial ownership information, and intends to publish it "this year." He stated that the third and final rulemaking, covering customer due diligence regulation for financial institutions, will be published within "one year after the effective date of the final reporting rule."

Investment Advisers

Mr. Das stated that FinCEN is working with the Treasury Office of Terrorist Financing and Financial Crimes to "better understand" the unique AML/CFT risks of advisory activities. He noted that the agency is analyzing how investment advisers might potentially hide assets belonging to Russian elites, proxies and oligarchs.

U.S. Real Estate Market

Mr. Das stated that the agency issued an Advance Notice of Proposed Rulemaking to address money laundering weaknesses in the U.S. real estate market.

Mr. Das urged Congress to fund requested budget increases in order to avoid missed deadlines.

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